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Uber-Lyft get reprieve in driver classification case

Uber-Lyft get reprieve in driver classification case

uber
Credit: CC0 Public Domain

Rideshare service rivals Uber and Lyft were given a temporary reprieve Thursday from having to reclassify drivers as employees in their home state of California by Friday.

An granted their request to put a hold on a judge's order that the companies comply with a new labor law, on the condition they agree to speeding up procedures in a to resolve the matter.

"The petitions are granted and the is stayed pending resolution of Lyft and Uber appeals," an appeals court said in its ruling.

The court said it wanted sworn statements from Uber and Lyft bosses that they have plans to comply if the judge's original order is eventually upheld and if a proposition aimed at overriding the new labor law loses on a November ballot.

A ballot measure sponsored by the companies would keep drivers classified as contractors but provide benefits such as .

"We are glad that the Court of Appeals recognized the important questions raised in this case," Uber said.

"And that access to these critical services won't be cut off while we continue to advocate for drivers' ability to work with the freedom they want."

Shortly before the appeals court decision, Lyft said it would suspend its rideshare service in California rather than classify drivers as employees entitled to benefits.

"This change would... necessitate an overhaul of the entire business model—it's not a switch that can be flipped overnight," Lyft said in a blog post.

Uber had also expected to suspend its ride service in California.


Explore further

Uber rival Lyft to suspend California service

© 2020 AFP

Citation: Uber-Lyft get reprieve in driver classification case (2020, August 20) retrieved 20 August 2020 from https://techxplore.com/news/2020-08-uber-lyft-reprieve-driver-classification-case.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Original Text (This is the original text for your reference.)

Uber-Lyft get reprieve in driver classification case

uber
Credit: CC0 Public Domain

Rideshare service rivals Uber and Lyft were given a temporary reprieve Thursday from having to reclassify drivers as employees in their home state of California by Friday.

An granted their request to put a hold on a judge's order that the companies comply with a new labor law, on the condition they agree to speeding up procedures in a to resolve the matter.

"The petitions are granted and the is stayed pending resolution of Lyft and Uber appeals," an appeals court said in its ruling.

The court said it wanted sworn statements from Uber and Lyft bosses that they have plans to comply if the judge's original order is eventually upheld and if a proposition aimed at overriding the new labor law loses on a November ballot.

A ballot measure sponsored by the companies would keep drivers classified as contractors but provide benefits such as .

"We are glad that the Court of Appeals recognized the important questions raised in this case," Uber said.

"And that access to these critical services won't be cut off while we continue to advocate for drivers' ability to work with the freedom they want."

Shortly before the appeals court decision, Lyft said it would suspend its rideshare service in California rather than classify drivers as employees entitled to benefits.

"This change would... necessitate an overhaul of the entire business model—it's not a switch that can be flipped overnight," Lyft said in a blog post.

Uber had also expected to suspend its ride service in California.


Explore further

Uber rival Lyft to suspend California service

© 2020 AFP

Citation: Uber-Lyft get reprieve in driver classification case (2020, August 20) retrieved 20 August 2020 from https://techxplore.com/news/2020-08-uber-lyft-reprieve-driver-classification-case.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
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